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Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Friday, May 30, 2014

Southwest gets hefty fines for advertising $59 fares that didn't exist

The fares advertised by Southwest Airlines sounded too good to be true: $59 for flights from Atlanta to Los Angeles, Chicago or New York.

The Department of Transportation has fined Southwest Airlines $300,000 for violating the full-fare advertising rule. Above, a Southwest passenger checks in at Dallas Love Field in February.

But when would-be fliers tried to book the fares, they found no seats available on those routes.

The U.S. Department of Transportation announced $200,000 in fines Thursday against the Dallas-based carrier for violating the federal full fare advertising rule.

The regulation requires airlines to display the full cost of all fares, including taxes and fees. Airlines that advertise fares for specific routes must also offer a "reasonable numbers of seats" for those flights.

In addition to the fine issued Thursday, the DOT ordered the airline to pay a $100,000 penalty that had been suspended after a previous violation of the same rule.

Southwest Airlines said the latest violation was the result of an error in a television ad. The airline said it never intended to offer the $59 fare for flights to New York, Los Angeles and Chicago.

"As soon as we became aware of our mistake, we pulled all incorrect advertisements off the air," the airline said in a statement.

In the previous violation, Southwest advertised $66 one-way fares from Dallas Love Field to Branson, Mo., between March 1, 2013, and March 21, 2013.  However, the DOT found that there were no seats available at the advertised price during the sale period.

The DOT fined Southwest $200,000 for that violation but suspended half the fine on the condition that the airline "cease and desist" from violating the same rule for a period of one year.

Virgin space flights cleared for take-off

Richard Branson's dream of commercial space flights took a step nearer reality after Virgin Galactic signed a deal with US aviation authorities to let it blast paying customers into space, the company said on Thursday.


The agreement with the Federal Aviation Administration (FAA) sets out how routine space missions from the Spaceport America base in the US state of New Mexico will be coordinated with the normal air traffic control system.

Commercial flights are to begin by the end of this year and more than 600 people have already signed up at $250 000 each to take a trip on SpaceShipTwo.

“Our team is working hard to begin routine and affordable space launches from Spaceport America and this agreement brings us another step closer to that goal,” said Virgin Galactic CEO George Whitesides.

“We are grateful to the FAA and New Mexico for their partnership to achieve this milestone.”

The Virgin announcement came hours before Branson's main rival in the commercial space race was to unveil its latest spacecraft.

Elon Musk, CEO and chief designer of SpaceX, was to present his company's “next generation” Dragon V2 spacecraft at an event in California on Thursday evening.

Company wants to start offering flights by end of 2014.

It's all systems go for Virgin Galactic.

The commercial space flight company owned by billionaire entrepreneur Richard Branson said Wednesday it has clearance from the U.S. government to begin planning space flights.

The flights will leave from Spaceport, which is owned by the state of New Mexico and was built to provide commercial space flight services.

The Federal Aviation Administration will work with local air traffic control to clear airspace for Virgin space flights.

Virgin Galactic has been gearing up to offer space flight services for the general public and has said it wants to start offering flights by the end of 2014.

Branson and his family will be on Virgin's first space flight.

Virgin Galactic said it has accepted more than $70 million in deposits from about 580 individuals. That's about 10% more than the total number of people who have ever gone to space.

Virgin Galactic's space vehicle is called SpaceShipTwo.

Virgin Galactic is preparing to take its first round of passengers on a suborbital space flight on SpaceShipTwo (pictured above) later this year.